Global Markets:
- Asian stock markets: Nikkei up 0.05 %, Shanghai Composite fell 0.05 %, Hang Seng rose 0.25 %, ASX 200 lost 0.20 %
- Commodities: Gold at $1249 (-0.30 %), Silver at $16.65 (-0.10 %), WTI Oil at $49.75 (+0.80 %), Brent Oil at $52.90 (+0.70 %)
- Rates: US 10-year yield at 2.23, UK 10-year yield at 1.06, German 10-year yield at 0.35
News & Data
- PBOC sets USD/CNY central rate at 6.8786 (vs. yesterday at 6.8612)
- Asia stocks mixed, dollar surrenders some gains as investors remain cautious
- Trump administration starts countdown to NAFTA talks in mid-August
Markets Update:
Stock markets recovered slightly overnight. While the political crisis in Washington D.C. remains a concern for investors, they have paused to reassess the situation.
The renewed risk appetite put precious metals under pressure. Gold fell from $1265 to a low of $1246 in Asia. A break below support at $1243/45 would suggest that the Gold is likely to test $1230 again soon.
USD/JPY recovered along with stocks. In Asia, the pair reached a high of 111.60 after almost reaching the 110 level in the previous NY session. Resistance is seen at 112, and strong selling interest can be expected again at 112.50. USD/JPY is likely to remain under pressure in the near-term, and the charts suggest further losses are ahead.
EUR/USD ran out of momentum in the past few trading sessions, but remains well bid. Key support is now seen at 1.1050 and 1.1020. Resistance lies at 1.1170/80. Should that be cleared, EUR/USD is likely to reach 1.13 in the near-term.
GBP/USD rose from 1.2930 to 1.2960 in Asia. Traders still don’t have an explanation for the flash crash that occurred in the late NY session. However, the decline will likely be retraced soon.
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